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Enterprise fraud management (EFM) is the real-time screening of transaction activity across users, accounts, processes and channels, to identify and prevent internal and external fraud in an organization. Enterprise fraud management tools are used to analyze the behavior between related users, related accounts, channels and other entities, to identify unusual behavior that could be a sign of criminal activity, corruption or fraud.
An effective EFM solution should address all functions including capturing of comprehensive data, data analysis and investigations. Cross-channel fraud exploiting phone, Web and other channels is a great threat in banking, insurance, health and other sectors. A layered approach is often used to deal with the growing complex and sophisticated internal and external fraud, whose velocity and impact are on the increase. This consists of several layers of protection with real-time detection capabilities, controls and multiple analytical approaches to assess user and account activities at all levels.
The five commonly used layers are:
In addition to deploying the advanced technologies, an effective EFM requires knowledgeable staff to manage and deal with the systems and to configure rules and alerts and models to rely on. Organizations should have established processes and policies balancing usability, convenience and security.
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